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1. Ophelia O'Brien, VP of Consumer Credit of American First Banks (AFB), monitors the default rate on personal loans at the AFB member banks. One of her standard's is "no more than 5% of personal loans should be in default." On each Friday, the default rate is calculated for a sample of 500 personal loans. Last Friday's sample contained 38 defaulted loans. Using alpha = 0.10, the appropriate decision is _______.

a) do not reject the null hypothesis
b) reject the null hypothesis
c) reduce the sample size
d) increase the sample size

2. If x is uniformly distributed over the interval 20 to 30, inclusively (20 x 30), then the mean of this distribution is __________________.
a) 25
b) 5
c) 10
d) 50